Contractors Rework Coverage

Contractors Rework Coverage

Definition

Covers the cost of tearing out a contractor's work when defects in the work
make its inclusion in the project unsafe, as well as the cost of replacing the
defective work. The normal method of providing this coverage is by endorsement
to the commercial general liability (CGL) policy. (There is no standard
endorsement for this purpose, but insurers active in construction markets may
have company-specific endorsements that add this coverage back.) For coverage
to apply, the work must fail to meet contractual specifications or other
industry standards that apply to the type of construction into which the
materials were incorporated. There is no coverage with respect to purely
cosmetic defects. A similar coverage, rip and tear coverage, covers the cost of
tearing out bad work but not the cost of replacing it. The primary markets for
rework and rip and tear coverages are concrete and masonry contractors.

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Written by highly regarded insurance experts, it provides key insight and
practical guidance into a number of cutting-edge areas, such as delay coverage
and green construction, that are barely touched by most other publications.